Funding SDG Stimulus by a Strategic Approach to the Worst Ever Debt Crisis

September 6, 2024 | New York City

In the run-up to the Summit of the Future, and as the UN system considers policy proposals for the Fourth Financing for Development (FfD) Conference, the world is confronted with its most serious development crisis to date. G77 Member States spend an average of 42% of their budgets on debt service, and more than ever before, this debt service is crowding out spending on the Sustainable Development Goals (SDGs). Developing countries spend 3 times as much on debt service as on education, 4 times as much as on health, 11 times as much as on social protection, and 54 times as much as on the climate crisis. The UN Secretary General (SG) has underlined how global progress on 2030 Agenda is way off track and has launched a request for an SDG Stimulus, looking to maximize funds available for investing in the SDGs. 

In this context and with insights from the recently concluded FfD PrepCom in Addis Ababa, the Friedrich-Ebert-Stiftung hosted a panel discussion for UN Member States on 1) how to identify policy recommendations in the short term that could best contribute to an immediate SDG Stimulus, and 2) developing a strategy to leverage opportunities over the next 18 months – including the FfD4 process, the G20 presidencies of Brazil and South Africa, and the review of the low-income country debt sustainability framework in the International Monetary Fund and World Bank – to make the SDG Stimulus happen.

The meeting was held under Chatham House rule.

Welcome & Introduction

• Sara Burke, Senior Policy Analyst, Friedrich-Ebert-Stiftung New York

Speakers

• Matthew Martin, Executive Director, Development Finance International
• Betty Wainaina, Associate Director, Multilateral Reform Program, Center for International Cooperation, NYU

Moderator

• Navid Hanif, Assistant Secretary-General for Economic Development in the Department of Economic and Social Affairs (DESA)